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Independent Subcontractor Agreement for Australia

Independent Subcontractor Agreement Template for Australia

An Australian-compliant Independent Subcontractor Agreement Template designed to establish and govern the professional relationship between a principal company and an independent contractor. This comprehensive agreement template addresses key aspects required under Australian federal and state laws, including contractor status, service scope, payment terms, GST considerations, insurance requirements, and intellectual property rights. The document incorporates provisions to ensure compliance with the Independent Contractors Act 2006 (Cth) and other relevant Australian legislation while providing flexibility to adapt to various industry requirements and specific engagement needs.

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What is a Independent Subcontractor Agreement?

This Independent Subcontractor Agreement Template is designed for use in Australian business contexts where companies need to engage external service providers on a contractor basis. The template ensures compliance with Australian legislation, particularly the Independent Contractors Act 2006 (Cth) and related regulations, while providing a framework for clear engagement terms. It is suitable for businesses of all sizes seeking to formalize contractor relationships while maintaining appropriate distinction from employment arrangements. The document includes comprehensive provisions for service delivery, payment terms, legal obligations, intellectual property rights, and risk allocation, with flexibility to accommodate various industry requirements and specific business needs. This template is particularly relevant in today's growing gig economy and evolving business landscape where independent contracting arrangements are increasingly common across multiple sectors.

What sections should be included in a Independent Subcontractor Agreement?

1. Parties: Identifies the contracting parties - the principal company and the contractor, including full legal names, ABNs, and registered addresses

2. Background: Outlines the context of the agreement, including the principal's business, the contractor's expertise, and the intention to engage in a contractor relationship

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes rules for interpreting the document

4. Engagement and Term: Specifies the nature of engagement, confirms independent contractor status, and sets out the duration of the agreement

5. Services: Details the specific services to be provided by the contractor, including scope, deliverables, and performance standards

6. Contractor Obligations: Lists the contractor's key responsibilities, including compliance with laws, professional standards, and project requirements

7. Principal's Obligations: Outlines the principal's responsibilities, including provision of necessary information and resources

8. Fees and Payment Terms: Specifies payment amounts, payment schedule, invoicing requirements, and expense reimbursement procedures

9. GST and Taxation: Addresses GST requirements, tax obligations, and related financial matters

10. Insurance and Liability: Details required insurance coverage and allocation of liability between parties

11. Intellectual Property: Addresses ownership and usage rights of intellectual property created during the engagement

12. Confidentiality: Protects confidential information and trade secrets of both parties

13. Termination: Sets out circumstances and procedures for ending the agreement

14. General Provisions: Includes standard legal clauses such as governing law, dispute resolution, and entire agreement

What sections are optional to include in a Independent Subcontractor Agreement?

1. Equipment and Resources: Used when specific equipment or resources are required for service delivery, detailing who provides and maintains them

2. Subcontracting: Include when the contractor may need to engage their own subcontractors

3. Non-Compete: Added when protecting against competition is crucial, subject to reasonable limitations under Australian law

4. Performance Reviews: Include when regular performance assessments are needed for long-term engagements

5. Work Health and Safety: Detailed section required for high-risk industries or when contractor works on-site

6. Data Protection: Include when the services involve handling sensitive or personal data

7. Change Control: Used for complex projects where scope changes are likely

8. Key Personnel: Include when specific individuals are crucial to service delivery

What schedules should be included in a Independent Subcontractor Agreement?

1. Schedule 1 - Services Description: Detailed specification of services, deliverables, and performance standards

2. Schedule 2 - Fee Schedule: Comprehensive breakdown of fees, rates, and payment terms

3. Schedule 3 - Insurance Requirements: Specific insurance types and coverage levels required

4. Schedule 4 - Service Levels: Detailed performance metrics and service level requirements

5. Schedule 5 - Approved Subcontractors: List of pre-approved subcontractors if applicable

6. Appendix A - Project Timeline: Detailed project milestones and deadlines

7. Appendix B - Compliance Requirements: Industry-specific compliance requirements and standards

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions



































Clauses



































Relevant Industries

Information Technology

Construction

Professional Services

Consulting

Creative Industries

Engineering

Healthcare

Education

Mining

Manufacturing

Telecommunications

Digital Services

Marketing and Advertising

Financial Services

Business Services

Relevant Teams

Legal

Human Resources

Procurement

Operations

Project Management Office

Risk and Compliance

Commercial

Administration

Finance

Business Development

Relevant Roles

Legal Counsel

HR Director

Procurement Manager

Operations Manager

Project Manager

Business Development Manager

Contract Administrator

Risk Manager

Compliance Officer

Department Head

Managing Director

Chief Executive Officer

Chief Operating Officer

General Manager

Commercial Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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